My dad is the primary and I'm the 2nd on my car loan. He is filling bankruptcy. Will they take my car too?

Question

When I got my car my dad had better credit so he was the primary buyer and I was the secondary. He is now filling for bankruptcy. I was wonderinf if anyone knew whether or not they would take my car too?

Answer 1

If you can pay the payments on the car, this loan can be eliminated from the bankruptcy when filing.

Answer 2

Spifiman is absolutely correct.

Additionally, if your father does include the vehicle in Chapter 7, he would no longer be responsible for the debt.  But you still are and they would come after you.

Best thing is for your father to reaffirm the debt and you make sure all the payments are current.

Answer 3

Have your Dad contact the bankruptcy attorney who is handling his case. He can re-affirm on the loan, all he has to do is tell the bankruptcy courts and they will notify the creditor that he is filing and wishing to re-affirm, he signs the re-affirmation agreement and you continue to pay the car note. If he is filing a Chapter 7..the loan payment has to be current in order to re-affirm. If he's filing a Chapter 13 and going into a payment plan, he can chose to include it in the plan and continue to pay on it, which doesn't have to be current upon his filing,  but he needs to let the attorney handling his case know what's going on.  Good Luck!!

Answer 4

Now for the real answer.

Auto finance is what I do for a living and all debts must be included when someone files bankruptcy.

Your dad should reaffirm on this loan and ask the lender to continue to report to the credit bureaus, that way you both will continue to get credit for the loan being paid as agreed.

This will help your dad in re-establishing his credit after the BK discharges.

And as far as ownership is concerned you both own the vehicle equally.